LEGAL SERVICES CENTER OF HARVARD LAW SCHOOL
CENTRO DE SERVICIOS LEGALES
122 Boylston Street
Jamaica Plain, Massachusetts 02130-2246
TEL: (617) 522-3003 • FAX: (617) 522-0715
Rep. Robert Aderholt
235 Cannon HOB
Washington DC 20515-0104
202-225-4876
January 23, 2017
Dear Representative Aderholt:
The Project on Predatory Student Lending recently filed a claim in the bankruptcy case of ITT on
behalf of former students. The basis of the claim, in addition to the allegations and evidence
developed by federal enforcement agencies, state Attorneys General, and former ITT employees,
is the testimony of over 2000 former ITT students. This testimony presents a consistent picture
of ITT’s systematic deceptive recruiting and financial aid practices.
Over the last decade of its existence, ITT took in over $8 billion in federal student aid, the
majority of which came in the form of federal student loans. This allocation has not been a good
investment for students or taxpayers. ITT used federal funds to promote its programs through
false advertising and coercive sales tactics. ITT’s investment in education was dwarfed by its
expenditures on advertising and executive compensation.
The results speak for themselves. Data from 2014 show that on average, ITT graduates earn on
average the same or less than high school graduates with no college education. Approximately
one in five ITT students defaults on their federal student loans within three years. Of the
remaining non-defaulted ITT borrowers, less than half have repaid a single dollar of the principal
of their loan balance.
To illustrate how ITT’s unfair and deceptive acts and practices have affected your constituents,
we have attached a copy of the complaint that has been filed, along with the accompanying
testimony from your constituents in Alabama’s 4th congressional district who attended ITT.
These statements represent just a sample of the harm ITT inflicted on your constituents,
countless others in your district, and many more across the country.
As you know, federal law provides for student loan debt relief for students whose schools misled
them or engaged in other misconduct. Please help your constituents, former students of ITT, get
the federal student loan relief that they deserve. Ask the Department of Education to forgive
federal student loans for former students of ITT.
Respectfully,
Project on Predatory Student Lending
Legal Services Center of Harvard Law School
TESTIMONY OF FORMER ITT STUDENTS FROM ALABAMA’S 4TH
CONGRESSIONAL DISTRICT
The following testimony comes from your constituents in Alabama’s 4th congressional district. It
was filed on January 3, 2017 in the United States Bankruptcy Court for the Southern District of
Indiana, as part of the ITT bankruptcy proceedings. 1 The testimony was filed in support of a class
action adversary proceeding complaint on behalf of all former ITT students. 2
"Claimed our training would be so good that we'd end up knowing anything we'd need to know
about any job we wanted, would be able to easily get certifications in case future employers
wanted them, etc." (ID 9720)
"Oh no, they were very adamant about the school was a quality institute that wouldn't be going
anywhere. If you ever brought up anything you saw about a lawsuit that you saw on the internet
they would laugh it off and tell you it was false. The same happened when you saw somewhere
that ITT makes the job prospects go away and tried to talk to one of them about it. They were
very good at manipulating you into thinking surely nothing could be wrong here." (ID 9720)
"Well honestly its crushing. I fought my way out of debt a few years back and didnt have much
but I got clear. Part of that was having to file bankruptcy and it was such a relief. I vowed I
would never get under so much pressure again, which is why I no longer have credit cards. But
here I am, worthless degree, no job prospects, working two jobs just to make ends meet. Theyve
pretty much ruined my chance for a decent future. Might sound like whining, but honestly Ive
been depressed as hell since this all happened and it came to light for me that Id been scammed.
[]Its two and a half years of my life down the tube and the only reward is just about 40K in debt.
Ive thought of ending it all over this stupid mess but fortunately my wife is a strong woman and
keeps me straight. Its just hard a lot of times, getting up to go to work so hard to barely make
ends meet. ITT was supposed to be my ticket to a better life and they screwed me like they did so
many other people." (ID 9720)
"Well honestly it's crushing. I fought my way out of debt a few years back and didn't have much
but I got clear. Part of that was having to file bankruptcy and it was such a relief. I vowed I
would never get under so much pressure again, which is why I no longer have credit cards. But
here I am, worthless degree, no job prospects, working two jobs just to make ends meet. They've
pretty much ruined my chance for a decent future." (ID 9720)
"I was NOT told about a private loan that I didnt even sign up for unless it was in the mountain
of paperwork that the financial aid guy had me signing very rapidly." (ID 9720)
1 In re ITT ESI, No. 16-07207-JMC-7A (Bankr. S.D. Ind. filed Sept. 16, 2016).
2 Villalba et al. v. ITT ESI et al. No. 17-AP-50003 (Bankr. S.D. Ind. filed Jan. 3, 2017).
"The recruiter did make it sound like it was going to be maybe 40K to get all the way to a BS.
Turns out that now I have a useless AAS and owe that much. I was NOT told about a private loan
that I didn't even sign up for unless it was in the mountain of paperwork that the financial aid
guy had me signing very rapidly. He always made you feel like you were holding up a line and
hurry up hurry up get through this web form and that web form, sign sign sign. They did give me
all my paperwork but none of it was in basic English. And no one really had time to explain
anything to you. All they kept telling me was that it'd be fine, I'd make a ton of money when I got
out of school and started my career." (ID 9720)
"Transferring credits to another college is not allowed as the credits are not transferable. By
closing, they have eliminated my ability to receive my BS without starting all over again at a
four year college." (ID 9116)
"Yes. Told me the school was accredited. Told me the credits would transfer. Nope. I have
contacted at least 8 community colleges and they will maybe take 3 classes out of the 20 I took."
(ID 8551)
"I am mentally and emotionally suffering. I feel trapped with no way out. I have developed an
anxiety disorder because of this and I am always on the edge. I live in fear every day of how I am
going to pay back these loans. If I will ever be able to go to an actual college. If Ill ever have
something that nobody can take away from me - a degree.If I will ever have a job that I can
support my family with." (ID 8551)
"I do not remember signing any loan forms or being counseled on any loans during this time."
(ID 8551)
"I have no idea what or how many loans I have. All I know is I am in major debt with nothing to
show for. with credits that don't transfer. Every document from ITT was electronic with an
electronic signature on file. I do not remember signing any loan forms or being counseled on any
loans during this time." (ID 8551)
"I currently owe over 40,000$ in debt that I can not pay off. Even after paying more then the
minimum payment I have barely made any progress in paying the minimum balance. []I have
experience severe depression and stress because of this situation." (ID 8011)
"When I started I was told that my payments would be 50$ a month for my private and federal
loans, My private loans were closer to 500$ and my federal 200$ a month. The school told us the
true amount when we passed the halfway mark in the program to where if we quit we would have
no diploma and still owe the money." (ID 8011)
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"ITT made sure anyone who went to their school passed. An example of this is that a friend of
mine discovered that a person in his electronics class had cheated on his final exam and the
dean of the schools response was that he had already paid his admission. Most of their classed
used outdated material, training equipment that did not work, and instructors that did not know
the material they were teaching. Instructors would also give the students the answers to the tests
to make sure that they would receive a passing grade. Most of the classes were repetitive and
rarely taught any new material." (ID 6091)
"No one ever mentioned that there was any trouble with any ITT anywhere. I was told it was an
amazing school and that everyone who went there and applied himself would easily walk into a
job in the field. We'd be getting snatched up by employees, recruiters for companies were
constantly calling, people like us were just what they were looking for to fill lifelong careers.
Lies. Instead, I can't even get a callback or an interview half the time because I'm an ITT Tech
alumni. No one will even give me a chance to show what I can do, which isn't a terrible lot
because it turns out I wasn't very well trained in much of anything, though I graduated with
honors. I've had about a 10% callback rate when I send my resume to an employer. Any
interview I've gotten they end up asking me about school and find a way to ask me about what I
know how to do, what I don't know how to do, and that was how I found out I'm missi[ng]." (ID
2619)
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